IIA IIA-CIA-PART4 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 121:

  A weakness of cohesive groups may be:

  A. Conformity.
  B. Groupthink.
  C. The development of norms.
  D. Commitment by members.
  B. Groupthink.

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  Groupthink occurs when a cohesive group's members tend to conform and ignore a relevant individual input that is at variance with the perceived group opinion.

• Question 122:

  As a conflict resolution strategy, optimizing (or a win-win strategy) is most appropriate when:

  A. The benefits being contested cannot be changed.
  B. The relationship between the parties is likely to continue.
  C. People are deeply committed to established habits and patterns.
  D. Time is scarce and the manager's patience is wearing thin.
  B. The relationship between the parties is likely to continue.

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  Optimizing or problem solving entails addressing the source of conflict and finding alternative strategies that benefit all parties. It promotes cooperative, positive attitudes that transfer to other organizational behaviors. Hence, optimizing may be worth the expenditure of more resources than other strategies because it improves the future relationship of the parties.

• Question 123:

  The organizational chart:

  A. Is used only in centralized organizations.
  B. Is applicable only to profit-oriented companies.
  C. Depicts only line functions.
  D. Depicts the lines of authority linking various positions.
  D. Depicts the lines of authority linking various positions.

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  An organizational chart is used to represent the organizational structure of an entity. It normally resembles a pyramid, with the chief executive on top and the operating work force on the bottom. Lines show reporting relationships, lines of authority, and task groupings. An organizational chart depicts promotional or career tracks and illustrates the span of control and the number of organizational levels.

• Question 124:

  Conflict maybe:

  I. Cooperative

  II.

  Competitive

  A. I only.
  B. II only.
  C. Both l and ll.
  D. Neither I nor II
  I. Cooperative II. Competitive
  C. Both l and ll.

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  Conflict may be either cooperative or competitive. Cooperative conflict is constructive and competitive conflict is destructive.

• Question 125:

  Which of the following is not an effective principle for guiding a manager's use of leadership techniques?

  A. Serve as a model of the behavior expected from others.
  B. Value accountability.
  C. Value differences.
  D. Follow written procedures at all times.
  D. Follow written procedures at all times.

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  Leadership is the act or process of influencing, inspiring, and guiding people so they will strive willingly toward the achievement of group objectives through common effort. Much management research has been devoted to determining the traits of leaders, leadership styles, and the situations in which particular styles are effective. However, a blind focus on internal process is a habit of administration, not of leadership. A manager of this type is called a bureaucratic leader. In the absence of a specific policy or procedure, (s)he seeks guidance from the next levelof management. In some situations, for example, when employees handle cash or highly delicate or dangerous equipment or chemicals, bureaucratic leadership may be needed.

• Question 126:

  Firms that sell products worldwide are most likely to have the lowest costs with a marketing mix that is

  A. Adapted to each market.
  B. Standardized for all markets.
  C. A combination of new and adapted products in each market.
  D. A combination of standardized products and adapted promotions.
  B. Standardized for all markets.

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  Firms that operate globally must choose a marketing program after considering the need for adaptation to local circumstances. The possibilities lie on a continuum from a purely standardized marketing mix to a purely adapted marketing mix. The former chooses to standardize products, promotion, and distribution. The latter adapts the elements of the mix to each local market. Worldwide standardization of all elements should be the lowest cost marketing strategy. However, even well established global brands ordinarily undergo some adaptation to local markets.

• Question 127:

  A global firm establishes a cost-based price for the firm's product in each country. The most likely negative outcome is that this pricing strategy will

  A. Set too high a price in countries where the firm's costs are high.
  B. Overprice the product in some markets and underprice the product in others.
  C. Create a gray market.
  D. Result in dumping.
  A. Set too high a price in countries where the firm's costs are high.

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  A firm may set a cost-based price in each market with a standard markup. In a region or country where costs are high, this strategy may result in prices that are too high to be competitive within the local market.

• Question 128:

  Coping with fragmentation requires strategic positioning. Which strategic position is a focus strategy that enhances bargaining power with suppliers and increases differentiation?

  A. Backward integration.
  B. Tightly managed decentralization.
  C. Specialization by product type or segment.
  D. Developing formula facilities.
  C. Specialization by product type or segment.

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  Specialization by product type or segment is a focus strategy that is used to cope with fragmentation. This strategy may enhance bargaining power with suppliers and increase differentiation because of perceived expertise and image. The downside is reduced growth opportunities.

• Question 129:

  Which of the following can be a limiting factor associated with group decision making?

  A. Groups generally do not analyze problems in enough depth.
  B. It is very difficult to get individuals to accept decisions made by groups.
  C. Groups have a difficult time identifying the important components of decision making.
  D. Accountability is dispersed when groups make decisions.
  D. Accountability is dispersed when groups make decisions.

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  The difficulty associated with group-aided decision making is accountability for the decision. If a decision is made by a group, no one person is responsible. The best method is for the group to recommend a decision but for a manager to assume responsibility for making the final decision.

• Question 130:

  All of the following are impediments to global competition except:

  A. Economies of scale.
  B. Rapid changes in technology.
  C. Differing marketing tasks.
  D. Sensitivity to lead times.
  A. Economies of scale.

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  Economies of scale are sources of global competitive advantage. Economies of scale in centralized production, logistics, purchasing, or marketing facilitate entry into the global market.